Fed Survey: Consumers’ Spending Expectations Fall

Americans’ expectations for how much more they will spend in the next year was 3.3% in June, down from 3.5% in May, according to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations released today. The outlook for household income growth ticked up slightly from 2.8% to 2.9%.

Consumers’ expectations for price inflation at the one-year horizon increased by 0.2 percentage points and at the three-year horizon by 0.1 percentage points, both reaching 2.7%. Expectations for how much home prices will rise held steady at 3% for the seventh consecutive month.